1 Part 1 . Overall Mobile Phone Market in China August domestic mobile phone shipments reached 30.9 million units, down 5.3 percent year over year. 45 new models were released in the month, down 18.2 percent year-over-year (y/y). Over the past 8 months, d omestic mobile phone shipments reached 251.1 million units and number of new model release reached 343, down 5.5 percent and 36.9 percent y/y respectively. Chart 1: Domestic mobile phone shipment s from August 2018 to August 2019 Part 2 . Development of 4G Mobile Phones August domestic 4G mobile phone shipments were 29.5 million units, down 3.7 percent y/y, and represented 95.5 percent of the total shipments. 32 new 4G models were released in the month, down 20.0 percent y/y, accounting for 71.1 percent of the total new models this month. Over the past 8 months, domestic 4G mobile phone shipments were 240.3 million units, down 4.2 percent y/y, and represented 95.7 percent of the total shipments. The total number of new model release reached 261, down 37.3 percent y/y, accounting for 76.1 percent of the total new model release. Part 3 . Local and MNC Brands of Mobile Phones August mobile phone shipments by the local b rands reached 29.0 million units, down 4.3 percent y/y, accounting for 93.8 percent of the domestic mobile phone shipments. Number -14.1% -20.9%-11.7%0.9% -18.2%-16.3%-12.8% -19.9%-6.0%6.7% 1.2% -6.3%-7.5%-5.3% -25%-20%-15%-10%-5%0%5%10% 051015202530354045 M7 M8 M9 M10 M11 M12 M1 M2 M3 M4 M5 M6 M7 M8 2018 2019 shipments (Unit:Millon) y/y 2 of new model s released by the local brands (40 units) decreased by 23.1 percent y/y, and represented 88.9 percent of the total number of new model release in the month. Mobile phone shipment volume for year 201 9 by the local brands reached 233.3 million units, down 3.2 percent y/y, and accounted for 92.9 percent of the domestic mobile phone shipments. Number of new models released by the local brands ( 304 units) decreased by 39.1 percent y/y, and represented 88.6 percent of the total number of new model release in the domestic market. Chart 2: August 2019 mobile phone shipments by local and MNC brands Part 4 . Development of Smart Phones August smart phone shipments were 29.6 million units, down 2.8 percent y/y, and accounted for 95.9 percent of the domestic mobile phone shipments in the month. Over the past 8 months, smart phone shipments were 240.0 million units, down 4.0 percent y/y, and represented 95.6 percent of domestic mobile phone shipments. In August , 36 new smart phone mode ls were released, down 10.0 percent y/y, and accounted for 80.0 percent of the number of new release. Over the past 8 months, 264 new smart phone models were released, down 36.5 percent y/y, and accounted for 77.0 percent of the number of new release. Local Brands 93.8%MNC Brands 6.2%

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